Jakarta. Indonesia’s automotive industry has set a national car sales target of 850,000 units in 2026, betting on a modest recovery after vehicle sales declined last year, according to the Association of Indonesian Automotive Industries (Gaikindo).

“Basically, we have agreed to set a target of 850,000 units this year,” Secretary General Kukuh Kumara said on Friday said during a discussion hosted by the Electric Mobility Ecosystem Association in Jakarta. “If there are new developments or new government policies, we will review it again,” he added, as quoted by Antara.

The 2026 goal marks a modest recovery from 2025, when domestic car sales declined for a second consecutive year. Wholesale sales — vehicle shipments from manufacturers to dealers — fell 7.2% to 803,687 units in 2025, down from 865,723 units a year earlier. Retail sales, measured from dealers to consumers, slid 6.3% to 833,692 units from 889,680 units in 2024, according to Gaikindo data.

Industry players expect the first quarter of 2026 to remain challenging, largely due to the long Eid holiday period from mid-February to mid-March, which reduces the number of effective working days at assembly plants. While the festive season typically boosts consumer spending, extended factory shutdowns can weigh on production and deliveries in the short term.

“The early part of the year will be unique,” Kukuh said. “The long Eid holiday means fewer working days, which affects output.”

To offset the seasonal slowdown, Gaikindo is banking on a stronger push in the months following Eid. Automakers plan to ramp up production from March through the end of the year, supported by the entry of new brands into the Indonesian market and a series of major automotive exhibitions scheduled after the holiday period.

“We hope that after Eid, we can step on the gas a bit,” Kukuh said. “The window is long, from March until the end of the year.”

The sales target also comes as the industry navigates shifting policy signals, including the absence of new incentives for electric vehicles and broader concerns over household purchasing power. Still, Indonesia remains Southeast Asia’s largest car market, and manufacturers see long-term potential driven by a growing middle class, infrastructure development and expanding consumer credit.

By setting the 850,000-unit target for 2026, Gaikindo aims to steer the industry back onto a growth path after two years of contraction, while keeping room to adjust should government policies or market conditions change.